BELLEVUE, Wash., Nov. 6, 2014 (GLOBE NEWSWIRE) -- mCig®, Inc. (OTCQB:MCIG) ("mCig"), a technology company that owns, manufactures, and distributes the mCig®, VitaCig®, and Vapolution products, is pleased to announce that on November 5, 2014 at 4:00 PM Eastern Standard Time the Securities and Exchange Commission's ("SEC") declared effective the VitaCig Inc. amended registration statement (S-1) filed on October 16, 2014 and originally filed on April 21, 2014. The effective notice allows the company to complete its strategic spinoff and pro-rata dividend of VitaCig Inc. to all mCig Inc. shareholders creating two companies pursuing two separate market opportunities.
Following the spinoff, mCig Inc. will continue to pursue the development and growth of its wholly owned brands: mCig® and Vapolution. The company will also turn its focus towards additional M&A opportunities within the global legalized cannabis industry. The company will continue to retain 246,000,000 shares of VitaCig Inc. representing nearly 49% of the company's shares outstanding at the time of the spinoff.
VitaCig Inc. will focus exclusively on the nicotine-free mobile vaporization industry while continuing to innovate its core line of products. In anticipation of this spinoff, the mCig Inc. board initiated a CEO search and has identified several promising candidates. The board plans to formally announce the new position prior to the initiation of trading in VitaCig Inc. shares.
Spinoff, Pro-Rata Dividend Details
With the registration statement effective, mCig Inc. can now declare a 1:1 dividend of VitaCig Inc. shares as disclosed in the registration statement. This will result in one (1) VitaCig Inc. share automatically credited to each shareholder owning one (1) mCig Inc. share (eg: If you own 10,000 mCig Inc. shares you will receive 10,000 VitaCig Inc. shares). The company will be completing the necessary paperwork to declare this dividend over the next few days and will update shareholders once the dividend has been declared.
The company will also be filing a Form 211 with FINRA and OTC Markets, LLC clearing VitaCig Inc. for trading on the OTCQB. This process is anticipated taking 30-60 days from the time of filing. The company plans to complete the paperwork by the end of this week. The company will be submitting two choices for a stock symbol for VitaCig Inc.: "VITA" or "VCIG". A Press Release will be issued announcing the final symbol selection by FINRA when it is provided.
"We continue to deliver what we promised. While this process was somewhat lengthy at seven months, the result will have profound effects on the future of our company. Let us start with mCig Inc. Our balance sheet will now be strengthened by our ownership of nearly 250,000,000 shares of VitaCig Inc. These shares will allow us to raise capital by selling down shares from time-to-time while incurring zero net dilution to mCig or VitaCig Inc. shareholders. Any sales made by mCig Inc. will be reported to the SEC and made public as transparently as possible if and when they do occur. Our goal is to utilize this capital for growth in the industry we believe in most: Cannabis legalization."
"As for VitaCig Inc., in less than 4 months it has eclipsed mCig and Vapolution in sales, WDRs and customers. At this stage the brand is exceeding every expectation we had for it and the recent award of trademarks by the US Patent and Trademark Office for the term: "VitaCig®" has allowed the company to scale its operations much quicker than when we focused on direct sales. Currently, the company is negotiating several country-specific master-agreements, each of which is potentially worth millions of dollars. In fact, we have identified two potential candidates for CEO that can take the company to the next level both in raising capital and growing sales. Sometimes in life, it is good to know when to let the training wheels come off. We think that moment with VitaCig is now and we are excited to be the largest long-term shareholders of the company," said Paul Rosenberg, CEO of mCig, Inc.
About mCig, Inc.
mCig, Inc. (OTCQB:MCIG) is a technology company focused on two long-term secular trends sweeping the globe: (1) The decriminalization and legalization of marijuana for medicinal or recreational purposes (2) The adoption of electronic vaporizing cigarettes (commonly known as "eCigs") by the world's 1.2 Billion smokers. The company manufactures and retails the mCig® – the world's most affordable vaporizer priced at only $10. Designed in the USA – the mCig® provides a superior smoking experience by heating plant material, waxes, and oils delivering a smoother inhalation experience. The company also owns Vapolution, Inc. which manufactures and retails home-use vaporizers such as the Vapolution 3.0. Through its wholly owned subsidiary, VitaCig, Inc. the company manufactures and retails the VitaCig®, a $5 nicotine-free eCig that delivers a water-vapor mixed with vitamins and natural flavors. See more at: http://www.mCig.org/, www.Vapolution.com, and www.VitaCig.org
The company believes that a well regulated marijuana industry is emerging as more states follow the lead of Washington and Colorado in legalizing marijuana. A similar trend is developing within the eCig industry following the first acquisition of an electronic cigarette brand (Blucigs) by a traditional tobacco company Lorillard Inc. for $135 million followed by another acquisition in February 2014 by Altria Group Inc. of Green Smoke for $150 million. Wells Fargo analyst Bonnie Herzog estimates that eCig sales may rise from $1 Billion in 2013 to $10 billion over the next three years.
mCig, Inc. (OTCQB:MCIG) has positioned itself as a first mover at the intersection of these two trends and hopes to create shareholder value by making the mCig® one of the leading choices for electronic consumption of plant material. - See more at: http://www.mcig.org/investors/investor-opportunity-subpage/
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, and future product commercialization; and the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies.
CONTACT: Paul Rosenberg CEO 1(425)652-5946Source:mCig, Inc.